QUESTION-JP Itd produces three joint products- A, B and C- which are then further processed. It is normal practice for the companyto apportion all pre-separation costs on the basis of weight of output of each joint product.Data for the last period is as follows:Costs incurred up to separation point£9,600Product AProduct BProduct COutput (kg)1006080£Costs incurred after separation2,0001,200800Point selling price per kgAfter further processingAt pre-separation point (estimate)508060257045RequirementsPrepare a statement showing the profit or loss mad by each product using the present method of apportioning pre-separation costs.Advise the management of JP Itd whether or not, on purely financial grounds, it should further process any of the threeproducts.

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Description: QUESTION-JP Itd produces three joint products- A, B and C- which are then further processed. It is normal practice for the companyto apportion all pre-separation costs on the basis of weight of output of each joint product.Data for the last period i

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QUESTION- JP Itd produces three joint products- A, B and C- which are then further processed. It is normal practice for the company to apportion all pre-separation costs on the basis of weight of output of each joint product. Data for the last period is as follows: Costs incurred up to separation point £9,600 Product A Product B Product C Output (kg) 100 60 80 £ £ Costs incurred after separation Point selling price per kg 2,000 1,200 800 After further processing 50 80 60 At pre-separation point (estimate) 25 70 45 Requirements Prepare a statement showing the profit or loss mad by each product using the present method of apportioning pre- separation costs. Advise the management of JP Itd whether or not, on purely financial grounds, it should further process any of the three products.

QUESTION- JP Itd produces three joint products- A, B and C- which are then further processed. It is normal practice for the company to apportion all pre-separation costs on the basis of weight of output of each joint product. Data for the last period is as follows: Costs incurred up to separation point £9,600 Product A Product B Product C Output (kg) 100 60 80 £ £ Costs incurred after separation Point selling price per kg 2,000 1,200 800 After further processing 50 80 60 At pre-separation point (estimate) 25 70 45 Requirements Prepare a statement showing the profit or loss mad by each product using the present method of apportioning pre- separation costs. Advise the management of JP Itd whether or not, on purely financial grounds, it should further process any of the three products.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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QUESTION- JP Itd produces three joint products- A, B and C-which are then further processed. It is normal practice for the company to apportion all pre-separation costs on the basis of weight of output of each Joint product. Data for the last period is as follows: Costs incurred up to separation point £9,600 Product B Product A Product C Output (kg) 100 60 80 Costs incurred after separation 2,000 1,200 800 Point selling price per kg After further processing 50 80 60 At pre-separation point (estimate) 25 70 45 Requirements Prepare a statement showing the profit or loss mad by each product using the present method of apportioning pre- separation costs. Advise the management of P Itd whether or not, on purely financial grounds, it should further process any of the three products.
Calcion Industries produces two joint products, Y and Z. Prior to the split-off point, the company Incurred costs of $36,000. Product Y weighs 15 pounds and product Z weighs 85 pounds. Product Y sells for $150 per pound and product Z sells for $125 per pound. B on a physical measure of output, allocate joint costs to products Y and Z. Product Y allocation $ Product Z allocation $ D
After allocating the joint process costs to its two joint products, Allomar Co. reports gross margin percentages of 30% for Product A and 40% for Product B. Sales reported for each product were $25,000 for Product A and $60,000 for Product B. Neither of the two products were processed beyond the split-off point. Calculate the total amount of joint costs assigned between the two products. Allocated joint costs Product A Product B Assuming Allomar used the physical quantities method to allocate the joint costs, what percentage of the total production volume did Product B represent? (Round answer to 2 decimal places, e.g. 15.25%.) Proportion of joint costs assigned to product B %
What is the value assigned to the by-product and removed from the work in process at the point of separation? In department two of Maysobra company, a by- product is removed. processed and then sold. The company uses the reversal cost method to account for the by- product. Data for the by-product follows: Units Sales price Further processing cost Selling and Admin Expenses Normal Profit The material is further 6,000 kgs P3/kg PO.80 20% of sales 10% of sales What is the value assigned to the by-product and removed from the work in process at the point of separation? P7,800 P8,800 P9,500 P7,500
X Ltd. manufactures product A which yields two by-products B and C. In a period the amount spent up to the point of separation was OMR 20,600. Subsequent expenses were: Materials (in OMR) A: 300 B: 200 C: 150 Direct Wages (in OMR) A: 400 B: 300 C: 200 Overhead (in OMR) A: 300 B: 270 C: 280 Gross sales value of product A, B and C was RO 15,000, RO 10,000 and RO 5,000 respectively. It was estimated that the net profit as a percentage of sales in B and C would be 25% and 20% respectively. Ascertain the profit earned on A.
Current Attempt in Progress A company manufactures three products using the same production process. The costs incurred up to the split-off point are $208,400. These costs are allocated to the products on the basis of their sales value at the split-off point. The number of units produced, the selling prices per unit of the three products at the split-off point and after further processing, and the additional processing costs are as follows. Product D E Your answer is partially correct. F (b1) Number of Units Produced Incremental profit (loss) 4,350 5,530 1,900 Product D Selling Price at Split-Off $10.10 $ 11.10 19.20 Selling Price after Processing $15.40 16.40 23.00 Determine the incremental profit (loss) of each product(s). (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Product E Additional Processing Costs $ $16,995 21,509 10,790 Product F $
Sharpest Ltd produces three products (A, B and C) and one by-product (D) in its joint process. The following information relates to production at the end of the current month: Product Units produced Sales value at split off Further processing costs Final sales value A 13000 R18 R24 R3 B 18000 R28 N/A R28 C 22000 R26 N/A R26 D 4500 R1.5 R1 R4 If the total cost of the joint process was R286000 and the sales value at split off method is used by Sharpest Ltd to apportion the costs, calculate the total costs attributable to product A. a. R48675.57 b. R50825.14 c. R50283.21 d. R47268.35 e. R55146.40
Example with Byproduct and Separable Costs: Lond Co. produces joint products Jana and Reta, together with byproduct Bynd. Jana is sold at split-off, whereas Reta and Bynd undergo additional processing. Production data pertaining to these products for the year ended December 31, 20x1 were as follows: Jana Reta Bynd Total Joint costs Variable $88,000 Fixed 148,000 Separable costs Variable $120,00 $3,000 123,000 Fixed 90,000 2,000 92,000 Production in Pounds 50,000 40,000 10,000 100,000 Sales price per pound $4.00 $7.50 $1.10 There were no beginning or ending inventories. No materials are spoiled in production. Variable costs change in direct proportion to production volume. The net realizable value of the byproduct (Bynd) is deducted from joint costs. Joint costs are allocated to joint products to achieve the same gross margin percentage for each joint product. Required: Allocate joint costs using: 1. Unit of measure method. 2. Net realizable value method. 3. Constant gross margin…
Benjamin Signal Company produces products R, J, C from a joint process. Each product may be sold at the split off point or be processed further. Joint production costs of $92,000 are allocated to the products based on the relative number of units produced. Data for the current year operations follow: Product Units Allocated Joint Sales Value at Produced Production Spit off Cost $ 32,000 $ 40,000 $ 20,000 $ 76,000 $ 71,000 $ 48,000 R 8,000 10,000 5,000 Product R can be processed beyond the split off point for an additional cost of $26,000 and can then be sold for $105,000. Product J can be processed beyond the split off point for an additional $38,000 and then sold for $117,000. Product C can be processed beyond the split off point for an additional $12,000 and then sold for $57,000. Required: Which products should be processed beyond the split off point? Show your calculations.
Calcion Industries produces two joint products, Y and Z. Prior to the split-off point, the company incurred costs of $29,000. Product Y weighs 20 pounds and product Z weighs 80 pounds. Product Y sells for $150 per pound and product Z sells for $125 per pound. Based on a physical measure of output, allocate joint costs to products Y and Z. Product Y allocation $fill in the blank 1 Product Z allocation $fill in the blank
Tango Company produces joint products M, N, and T from a joint process. This information concerns a batch produced in April at a joint cost of $165,000: Product M N Product M Units Produced and Sold 14,500 N T 8,500 9,500 After Split-Off Allocated Joint Cost Total Separable Costs $ 13,900 13,400 6,700 Required: How much of the joint cost should be allocated to each joint product using the net realizable value method? (Do not round intermediate calculations. Enter your final answers in whole dollars.) Total Final Sales Value $ 205,000 185,000 34,000
TB MC Qu. 11-82 (Algo) Atkinson, Incorporated, manufactures products A, B, and C... Atkinson, Incorporated, manufactures products A, B, and C from a common process. Joint costs were $141,900. Additional information is as follows: If Processed Further Additional Product Units Produced A B C 5,700 6,950 3,475 16,125 Sales Value at Split-Off Sales Value $ 38,200 60,465 41,700 $ 52,450 77,840 52,125 Costs $ 3,800 10,425 13,900 $ 140,365 $ 182,415 $ 28,125 Assuming that joint production costs are allocated using the physical quantities method (units produced), what were the costs allocated to Product A? Note: Do not round intermediate calculations.